Forex trading. Pound/Dollar GBP/USD forecast for today, Seprember 30, 2021
The exchange rate of the pound/dollar pair fell to 1.3430 on Wednesday and reached the lowest values in eight months.
Market participants are concerned that the fuel crisis that has engulfed the UK could lead to a sharp slowdown in economic growth and a jump in inflation. According to analysts, the panic buying of gasoline in recent days has become a symptom of larger problems in the supply chain that threaten to undermine the economic recovery after the pandemic. The lack of fuel increases the risks that the country will find itself in a deadlock in the near future.
The pound lost value despite the rise in British government bond yields, as investors expected interest rates to rise by February next year after a tough statement by the Bank of England last week. Market participants did not react to the prospect of a rate hike by buying the pound, as could be expected. There are still concerns that the Bank of England's plans are associated with the risks of high inflation, and not with an acceleration in growth. Markets are worried that the Bank of England is forced to tighten policy in a rather weak economy. Gas prices have risen across Europe, but inflation concerns are mainly related to the pound, as problems in the UK have worsened due to labor shortages after Brexit.
The forecast expects a further decline in the pound/dollar exchange rate to the values of 1.3400, 1.3380 and 1.3350.